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HomeMy WebLinkAbout1434 - . ~ + Uwteatlwt Oovtat+atwrs, dorrower std Lender covenant and agree ss follows: L ltptwat tl MocfMl ttrtl iMeral. Borrower shall promptly pay when due the principal of sad interest on the iadebtedttess evidenced by the Note, prepaymeat and late charges as provided in the Note. and the principd of sad interest oa any Future Advances securod by Ibis Mortgage. >ltri ter 11a:ea sell Iasrnace. Subject to applicable law ~x to a written waiver by Lender. Borroeer shall pay to Leader oa the day tnoathty itutaliments of principal alai int.~rect arc. payable under the Note, until the Note is paid in full. a sum (herein "Funds' equal to ortatwelfth of the yearly tas~~ and assessments which taay attain priority over this Mortgage, sad grotmd [alb oa the Property. if shy. plus one-twelfth of y..:~ premium iauallmenb for hazard insurance. plus one-twelfth of yearly premium installment: for mortgage inutrattce, if say. all as reasonably estimated initially and iroat time to tithe by Leader oa the basis of assessments and hills and reasonable estimates thereof. The >rltnds shall be held in an institutinn the deposiu or accounts of which are insured or guaranteed by a ~Faieral of , state agency (including Lender if Lender is such an institution). !.ender shall apply the Funds to pay said taxes. assessrrtems. iasttrattoe premiums and !round rents. !.ender may not charge for sn holding and applyini the Funds. analyzing said account. or verifying_artd compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law , permib Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable taw «x1t intarrat tc+ be paid: I ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender chap pve to Borrower, without charge, an annual accounting of the Funds showing credits and debits to cite Funds attd the - purpote for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by the Mortgage. 1if the amount of tbta Funds held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes. a>aasments, insurance premiums and ground rents as they fall due, such excess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly irtstalltnents of Funds. If the amount of the Funds bdd by Leader shall not be wt6eieat to pay taxes, asxsstrtents, insurance premiums and ground rents as they fall due, 8ocr~oaer:hall pray to Larder any amount necessary to make up the deficiency within 30 days from the date notice is mailed by header to Borrower requesting payment thereof. Upon payment in full of all sums stxured by this Mortgage, Lender shall promptly refund to Borrower any Funds t held by Lender. If under paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender, Lender shall apply. no later- than immediately prior to the sale o[ the Property or its acquisition by Lender, any Funds held by Leader at the time of application as a credit against the sums secur+cd by this Mortgage. ~ 3. AKlieatiorr of >rayaterats, Unless applicable law provides otherwise, sit payments received by Lender under the ~ Note sad paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, they to interest payable on the Note, then to the principal of the Note, and then to interest and principal on say Future Advances. 1. Charger, Lkws, Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the mantxr providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the psyee thereo[. Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph. atxl in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in. legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard Iswtrartce. Borrower shall keep the improvements now existing or hereafter erected on the Property irtsurod against loss by fin, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 'I1te insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the inwrauce carrier. Ail insurance policies and renewals thereof shall be in form acceptable to Linder and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Leader may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not- economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from. the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to correct and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any Assurance policies and in and to the proceeds thereof resulting from damage to the Property prior to tltc sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sate or acquisition. 6. Praervatiou sad Maintenance of Property; Leaselwlds; Condominiums; Planned Unit 1Derebptneats. Borrower shalt keep the Property in good repair and shall not commit Kaste or permit impairment or deterioration of the Property sad shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development. the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by .Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall :unend and supplement the cuversants and agreements of this Martgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invot~ing a bankrupt or decedent, then Lender at i_ender i option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required Io maintain such inuurance in effect until such time as tfte:requirement (or such insurance terminates in accordance with Borrower's and a~ 326 Pa~E 1432